It's been confirmed that Foxtons has bought rival London-focussed agency Douglas & Gordon.
In a trading statement this morning Foxtons tells its shareholders that the deal was for £14.25m. The D&G business will continue to be run as a separate brand and with the existing management team remaining in place.
Douglas & Gordon was at one time a famously independent-minded agency with a radical approach to advertising and high-profile authority in the London agency; in recent years it has become a more Foxtons-like organisation and some analysts have suggested the current acquisition was inevitable.
Foxtons CEO Nic Budden comments: "Douglas & Gordon is a business we have long admired and respected. Like us, it is a business with intimate knowledge of the London market and a culture built around delivering results for customers making it an excellent strategic fit. Today's announcement follows the acquisitions of London Stone, Pillars Estates and Aston Rowe in 2020 and demonstrates our commitment to use the Group's cash resources to acquire well run businesses that advance our strategy and offer attractive financial returns."
Douglas & Gordon CEO James Evans says: "We're really pleased with the deal, and have great admiration for Foxtons as a business, brand and competitor. Our offer is complementary to theirs and we know that with their backing, the Douglas & Gordon business can go from strength to strength. We really look forward to working together to better serve buyers, sellers, landlords and tenants."
The Foxtons statement this morning continues: "Having been established in 1958, Douglas & Gordon is a high quality London estate agent with a well-respected brand and large lettings business delivering around 65 per cent of [its] total revenues from 2,900 tenancies.
"The directors believe that D&G will fit well with Foxtons' existing business model due to its high level of customer service and compliance, strong fee integrity, well-established landlord relationships and similar customer-focused and results-based culture."
Foxtons will report its preliminary results for 2020 in just over a week's time, on March 10.